Cullen in bid to curb dollar

A big intervention to sell New Zealand dollars is seen as unlikely. However, it is understood Mr Cullen is exploring how the agencies could use existing activities, such as the issuing and timing of government bonds or currency trading. The greatest impact is likely through the Treasury's debt management office, which usually tries to minimise its effect on the currency.

Dr Cullen told the finance and expenditure committee: "The Government does not see itself as entirely without options in this respect, but those options have to be dealt with very carefully indeed."

He said he preferred not to comment "at this stage" on any possible action but would comment "when I've done something".

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